OREANDA-NEWS. September 6, 2011. Sistema JSFC (“Sistema”) (LSE: SSA), the largest diversified public financial corporation in Russia and the CIS, today announces that it has received an indicative offer from MTS to purchase a 100% stake in CJSC Sistema-Inventure, a wholly-owned subsidiary of Sistema, for RUB 10.56 billion.

CJSC Sistema-Inventure currently holds a 29.05% stake in OJSC Moscow City Telephone Network (“MGTS”), representing 24.4% of MGTS’ charter capital. CJSC Sistema-Inventure owes RUB 10.44 billion of debt to Sistema.
 
The completion of the transaction is subject to the negotiation and execution of binding documentation and receipt of all necessary corporate approvals, including the approvals of Sistema’s and MTS’ Boards of Directors. The deal is expected to be completed by the end of the year.